1. Field of the Invention
This invention relates to the field of electronic commerce. In particular, the invention relates to surrogate control of electronic commerce transactions.
2. Description of the Related Art
The rapid growth and expansion of network and Internet technologies has facilitated electronic commerce transactions, particularly in the area of consumer retail goods. Taking advantage of the widespread availability of the Internet, numerous retailers have gone online with retail shopping sites on the World Wide Web (web). These sites allow consumers to shop easily and conveniently from the comfort of their homes and offices. However, access to electronic shopping is limited to those possessing specific forms of credit or cash that can be transferred electronically.
Numerous non-cash techniques are typically used for executing purchase transactions among purchasers and online merchants. Indeed, numerous types of credit cards and banking cards are in widespread use. For example, a credit card can be used to effect online purchases, with the transaction being paid for by a credit card clearing house or bank and creating a credit obligation for the owner of the credit card. Another type of card which looks like a credit card but functions differently is the debit card. The debit card is used much like a credit card in that it is tendered by the purchaser to an online merchant for payment. Payment is effected from a bank to the merchant and the funds are deducted directly from the card holder's bank account.
However, the problem with credit cards and debit cards is that certain conditions have to be met for issuance, conditions that can include restrictions on age and financial criteria. As a result, many consumers do not meet the requirements for credit card or debit card issuance, thereby eliminating them from the ranks of online shoppers. Furthermore, the negative security implications associated with exposing credit card or debit card account numbers over a public network like the Internet make many consumers uncomfortable. Thus, while many of these consumers have the technology and financial resources available, they are put out of reach of online merchants because they do not have a particular form of financial resources.
As an alternative to cash and credit cards, stored value cards are now available. Stored value cards require the purchase of a card which looks much like a credit card, but which has a limited amount of available value to be spent. The balance is contained in a magnetic strip or computer chip in the card. As the stored value card is used, the remaining balance on the card is depleted. However, like some debit cards, stored value cards do not enjoy the functionality of credit cards in many business transactions, particularly electronic commerce purchases.
One possible solution to this problem for some, particularly minor children, is found in secondary credit cards. A credit card holder may obtain one or more secondary credit cards from the issuer, as for example for family members, that are linked to the main credit card. The secondary credit cards are functionally identical to the main credit card in all respects and, indeed, typically bear the same account number and differ from the primary card only in the name of the person who is authorized to use the secondary card. Any purchases made with the secondary credit cards are debited against the credit limit of the single account in which the primary and secondary cards are issued. Thus, the main or primary cardholder has no control over the spending power or abilities of the secondary credit cards linked to his card, beyond the fact that the total of all debts incurred by all cards on the account cannot exceed the credit limit of the main credit card.
These secondary credit cards, therefore, are problematic because the secondary cardholders can quickly accumulate a significant outstanding balance on the main credit card account, thus reducing the main cardholder's spending power. Most importantly, the main cardholder is not aware of the decrease in the available credit or spending limit as a result of expenditures by a secondary cardholder. Consequently, there is a need for a system or service that enables those without a credit card, for example teenage children, to shop and buy at online merchants without requiring a credit card.